An experimental investigation of insurance decisions in low probability and high loss risk situations


ÖZDEMİR Ö. , Morone A.

JOURNAL OF ECONOMIC INTERACTION AND COORDINATION, cilt.9, ss.53-67, 2014 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 9 Konu: 1
  • Basım Tarihi: 2014
  • Doi Numarası: 10.1007/s11403-013-0112-2
  • Dergi Adı: JOURNAL OF ECONOMIC INTERACTION AND COORDINATION
  • Sayfa Sayıları: ss.53-67

Özet

This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results indicate that subjects consider the probability of loss (loss size) when they make buying decisions (paying decisions). Most individuals are risk averse with no specific threshold probability.